Today we are looking at why the Merchant Cash Advance product is the perfect solution for salons. Why do salons use Merchant Cash Advances? What are the benefits? Let’s take a look.
Like many other industries, health and beauty took a dip during the downturn. In particular, ‘luxury’ non-essential treatments like massages and spray tans were less in demand due to the lack of disposable cash in people’s pockets. While the demand for salons was still there, the days of roaring profits seemed like a thing of the past.
Thankfully that is no longer the case and the health and beauty sector seems to be returning to the good old days again. With more treatments available than ever before, it’s never been a better time for salon owners to expand and grow.
While there is more to offer customers than ever before, being able to offer these services takes time and money. Salons are now required to invest in all sorts of new equipment to ensure they can offer the most up to date and effective treatments. To achieve this they often have to raise cash.
So, why are salons turning away from traditional funding options like bank loans in favour of alternative finance? It’s simple: Alternative business finance products such as the Merchant Cash Advance are flexible, quick and work in-line with cash flow. More salons than ever are turning to the Merchant Cash Advance to stay ahead of the competition.
Most salons accept card payments, and it’s this process that makes them eligible to apply. Using their card sale volumes, a lender will advance a salon cash and will receive the money back by agreeing to take an affordable percentage of future card sales. This means that, the more the busier the salon is, the quicker the loan is repaid.
If you are a salon owner and you’re looking to raise funds for any purpose, contact our team today and discuss your options. Put volume in your business today!